Lawmakers take another swig at regulating cold beer

One of the longstanding realities of Indiana alcohol laws is that the only beer customers can find in a convenience store is beer that's warm. But the Indiana-based Ricker's found a loophole.
Mykal McEldowney/IndyStar

Buy Photo

Cold beer is kept in coolers behind the counter at a Ricker's convenience store in Columbus, Ind., Thursday, March 23, 2017. Servers must bring the beer to a patron's table in the store's restaurant area. After the chain's lawyers realized the in-store restaurants qualified for cold beer sales, this Ricker's location and one in Sheridan, Ind., obtained the required licenses to serve cold beer to patrons for consumption in the restaurant or to-go. The Columbus location also sells liquor for consumption outside of the restaurant. To many in the liquor store industry, Ricker's use of this loophole seems like an attempt to cut into an area that has previously been domain of liquor stores, which are subject to additional regulations.(Photo: Jenna Watson/IndyStar)Buy Photo

Lead lawmakers' latest attempt to prohibit the sale of cold beer in convenience stores would let Ricker's keep selling carryout beer until next April.

That would give lawmakers further time to take action in the 2018 legislative session — and sets the stage for another alcohol law fight next year.

Jay Ricker, the owner of the Indiana convenience store chain, says the legislation effectively targets just him. The language in the updated bill grandfathers in any stores that obtained a restaurant liquor license prior to November 2016.

Ricker's obtained its own permits later in November and a second one in December, just barely missing the cutoff point.

Other known convenience stores in Indiana, such as Joan & Yogi's One Stop in Terre Haute and Fishtail Food Mart Cafe in Evansville, would be able to continue selling cold carryout beer.

"They've said it's not personal, but when I look at this, they chose the dates, and our licenses run out just after that and then they've got all these exceptions that yes, that can stay," Ricker said. "It takes care of everybody else but us."

The fight over cold beer started midway through the legislative session when GOP leaders discovered Ricker's was selling cold beer using its restaurant liquor license at locations in Columbus and Sheridan. Both House Speaker Brian Bosma, R-Indianapolis, and Senate Leader David Long, R-Fort Wayne, said the the issuing of the license by the Alcohol and Tobacco Commission went against the will of the legislature.

“We’re going to change the law to what the law really is,” Bosma said after finding out about Ricker’s. “I’m not upset with Ricker's at all. They’re creative folks, but I think we’ve had a commission that has ignored a long-standing policy that’s been debated in the legislative body where policy on alcohol matters should be determined.”

Lawmakers promptly amended alcohol legislation that had already passed through one chamber, in order to keep other convenience stores from following suit.

The language in House Bill 1496 specifically emphasized the will of the General Assembly is to prohibit the sale of carryout beer at restaurants within convenience or grocery stores. They would no longer be able to obtain a new liquor license to sell carryout beer after May 17 or renew an existing license after April 2018, unless 60 percent of their sales come from on site alcohol consumption — a threshold they are unlikely to meet.

The language exempts hotels, marinas, golf courses, microbreweries, social or fraternal clubs and state parks.

Matt Bell, a lobbyist with Big Red Liquors, said he was comfortable with the updated language of the bill. He and other liquor store advocates had concerns about convenience stores using often cheaper restaurant liquor licenses to sell the same alcohol that liquor stores could.

The final proposal still needs to be signed by all four lawmakers in the conference committee and approved by each chamber before it could become law. Rep. Ben Smaltz, R-Auburn, said he's already signed the conference committee report, but Senate conferee Karen Tallian, D-Portage, said she had yet to even see it.

However, Ricker is already thinking ahead to the next step: pleading his case to the governor, who previously defended the ATC's actions.

“The state of Indiana has followed the law,” Gov. Eric Holcomb said during a media availability in late March. “I’m confident we have acted within the law and administrated it correctly.”

He also added the ATC would continue following the law if the legislature passed new alcohol language.

CLOSE

Indiana Gov. Eric Holcomb weighs in on the Ricker's cold beer sales, saying he believes they have acted within the law, during a press conference at the governor's residence, Friday, March 31, 2017.
Jenna Watson/IndyStar